The research shows there is still a lot to do to engage younger people in money matters and to help them be financially fit for adulthood and managing their lives in the years ahead.
"Although the Money and Pensions Service findings show a clear lack of progress in engagement on financial awareness and money management skills in the 7-17 age bracket, Royal London’s own research* shows that parents have become more open to talking to their children about money over the years. Three in four (76%) 18-24 year olds had spoken to their parents about money matters when they were growing up, in stark contrast to those aged over 65, where less than half (43%) said that they’d had conversations with their parents about money in their younger years.
"Generationally the comfort in talking about finances and money matters shows an improving trend with more than half (52%) of 55-64 year olds and 45-54 year olds (58%) recalling conversations about money with their parents.
"The MaPS research findings that children from a lower income household and those living in social housing, or a rural area, were less likely to have had a meaningful financial education, this was echoed in our research. It revealed that just over half (54%) of those in households with an annual income of less than £20,000 talked about money with their parents as a child. This compares to 62% of people in households which earn between £40,000 to £59,000.
"While it’s positive that parents are talking to their children, making them money confident involves more than conversations – however useful they are. If children aren’t getting enough financial education in schools or aren’t encouraged to, for example, understand how money works or to get into the savings habit early, they may find the money decisions they have to make later on in their life are that much harder."
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